How this is calculated
Taxable income = gross − ₹75,000 standard deduction. Tax is then charged in slices under the new regime, rising from 5% through 10%, 15%, 20% and 25% to 30% at the top. Where taxable income falls at or below ₹12 lakh, the §87A rebate cancels the tax entirely, so the effective liability is nil.
Worked example on ₹15,00,000: taxable income is ₹14,25,000, which is above the rebate threshold, so the full slice calculation applies and tax works out to roughly ₹97,500 before cess. The effective rate is around 6.5% — low, because the first ₹4 lakh is untaxed and the slabs below ₹12 lakh are shallow.
The cliff at ₹12 lakh is the number worth knowing. At ₹12,00,000 of taxable income the rebate takes tax to zero; a little above it, tax becomes payable on the whole computed amount. Marginal relief exists to soften the immediate step, but the region just above the threshold is still the least efficient place on the Indian salary scale to sit.
CTC is not salary, and in-hand is neither
Indian offers are quoted as Cost to Company, which bundles things you never see: the employer's EPF contribution, gratuity provision, insurance premiums, and often a performance bonus that is not guaranteed. Dividing CTC by twelve overstates monthly in-hand by a wide margin — commonly 15% to 25%.
The structure matters as much as the number. A package with a high basic component means more EPF (12% of basic from each side), which lowers in-hand but raises retirement savings. A package loaded with allowances does the opposite. Two offers with identical CTC can differ by thousands of rupees a month in what actually reaches your account.
This calculator works from gross salary rather than CTC deliberately, because gross is the only figure that maps cleanly onto tax.
What this estimate leaves out
EPF, which for most salaried employees is 12% of basic salary from the employee side, matched by the employer. Because basic is typically 40% to 50% of gross and varies by employer, deducting it generically would be a guess rather than a calculation.
Also excluded: professional tax, levied by some states at a few hundred rupees a month; the 4% health and education cess on tax payable; surcharge on incomes above ₹50 lakh; and everything specific to the old regime — HRA exemption, 80C investments, 80D medical insurance, and home loan interest — which is why anyone with a large 80C portfolio should compare both regimes before choosing.
How to use the india salary calculator
- Enter your annual gross salary. Use the headline figure from your contract or offer letter, in ₹, before any deductions.
- Read the net and monthly rows. Net salary is what remains for the year; take-home per month is that divided by twelve.
- Check the effective rate. Income tax and Social contributions as a share of gross. This is the number to compare across countries — not the top bracket rate, which almost nobody actually pays on their whole income.